- EUR/USD trades near 1.1885 versus 1.1870 in early Asia.
- Mild risk-off on Mnuchin's recall of Fed funds fails to boost the dollar.
- Fund scarcity may force the Fed to implement more aggressive easing.
EUR/USD consolidates on Thursday's gain in a sign of resilience to US Treasury Secretary Steve Mnuchin's risk-destabilizing move.
The US stock futures trade in the red as Mnuchin's call to recollect funds allocated to Federal Reserve would limit the central bank's ability to provide additional support to businesses at a time when the second wave of the coronavirus is accelerating.
According to Reuters analysts, risk-off is not necessarily a reason to buy the haven dollar. That's because recalling funds from the Fed would leave the central bank with no options but to boost bond purchases or implement negative rates.
The Fed has recently reiterated that it is willing to do more if needed. With the additional fiscal aid looking increasingly unlikely, the central bank may have to do the heavy lifting.
These macro factors could keep the pair better bid in Europe. The data calendar is light, and the focus would be on the German Bundesbank President Weidmann's speech, due at 13:00 GMT. Bug gains, however, may remain elusive, courtesy of the EU budget-infighting, a weak economy, and dovish European Central Bank expectations.
|Today last price||1.1884|
|Today Daily Change||0.0005|
|Today Daily Change %||0.04|
|Today daily open||1.1879|
|Previous Daily High||1.188|
|Previous Daily Low||1.1816|
|Previous Weekly High||1.192|
|Previous Weekly Low||1.1746|
|Previous Monthly High||1.1881|
|Previous Monthly Low||1.164|
|Daily Fibonacci 38.2%||1.1856|
|Daily Fibonacci 61.8%||1.1841|
|Daily Pivot Point S1||1.1837|
|Daily Pivot Point S2||1.1794|
|Daily Pivot Point S3||1.1772|
|Daily Pivot Point R1||1.1901|
|Daily Pivot Point R2||1.1923|
|Daily Pivot Point R3||1.1965|
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